Why is Offshore Outsourcing Management necessary?

 In Outsourcing / Offshoring

Signing-in is the Beginning

If you think that after signing in the contract you are free and the Outsourcing process is complete; you are wrong my friend. It has just begun. Now you will truly start the business relationship and effective and meticulous Management oversight will be essential hereafter.

You must be thinking, I already have a management team to take care of Outsourcing projects, I don’t need to worry about it. But, here is the difference, it doesn’t matter if you are a big corporation or a small business, but if your plan is to regularly outsource work, you will need to frame a systematic structure to manage your outsourcing process. I have collaborated a few points which will help you manage your business for successful outsourcing.

Why do I need Outsourcing Management to improve my business?

Yes, absolutely! I need not mention the many benefits of Outsourcing, but undoubtedly the outsourcing process also requires good management to make it an accomplishment. It starts right from selecting a service provider, to negotiating the deal, managing the relationship and dealing with the distributed process, outsourcing needs a good management strategy to be followed by both client and service provider.

Connecting a good management structure for an outsourcing process can help attain:

  • Enriched performance and quality
  • Healthier risk and crisis management
  • Better coordinated and organized team
  • Further reductions in overall expenses
  • Improved streamlining of the outsourcing process
  • Increased Success Ratio

What core functional areas should I emphasize on?

For the successful management of the Outsourcing process the Client and the service provider both need to concentrate on the below core functional areas. These critical areas include:

  • Analyze the scope and price of the Outsourcing Project

Cost is often considered one the most important reasons cited for choosing outsourcing. It is therefore necessary that both parties analyze the scope and pricing of the outsourced project before they sign a contract.

  • Communication should not be a barrier

Communication should not be a barrier or a hindrance while managing the outsourced projects. This is key to establish a well-managed structure for successful accomplishment of outsourced projects. Communication strategy should be formed such that it lays importance on, reliable contact between client and service provider, regular feedback, clarity in instructions and the development of a dependable system for clarifying any doubt and solving it efficiently.

  • Never compromise the Performance

To measure the performance you have to concentrate on both, the Project Quality and the Project Delivery Timeline. To establish this, the client must keep a close eye on the quality by comparing it with the previously discussed parameters. The client should also focus on monitoring the deadlines and demand liability reports in case of any delay.

  • Always have a backup plan

It is always better to be prepared for any undesirable situation, this holds true for both sides of the outsourcing process. For this, you need to have a back-up plan in place so that if anything does not go as per plan you have a strategy to control the panic and lower any risk involved.

  • Periodic project training

The clients must train the service provider in regular intervals or when required with the new and updated information related to the project. By doing this the client can be rest assured to facilitate better production, improved timelines and increase the overall quality of the outsourced project. The client must closely monitor and manage the projects to attain and analyze the need for training.

  • Maintain a healthy Client-Vendor Relation

This may sound as a less important point but trust me it is a very crucial one. The client and service provider have to have a healthy business relationship for the success of the project. Business relationships can be maintained with communicating on regular intervals and having transparency with each other.

Management of in-house team is equally important

The external and internal management of the outsourcing arrangement go hand in hand when the motive is to attain maximum success ratio. The in-house management team should be headed by a Project Manager, who is fully responsible for the guidelines of the project being outsourced. They have to be skilled to maintain a balance between the demand and supply and take necessary steps to distribute the work between in-house work and service provider.

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